Using the Point Factor Method to Establish Pay Rates
January 2, 2020 2:11 pm
Are you taking the opportunity to review and reevaluate pay rates in the New Year but don’t know where to start? The point factor method is a quantitative technique to evaluate individual jobs and/or job groups based on elements that are essential to an organization’s operations and success and set appropriate pay rates. Compensable factors are identified in a job analysis, points are assigned to the factors, the factors are weighed based on the job requirements, and a pay structure is established for the position.